Betting on America, Flutter’s NYSE listing is confirmed

Lea Hogg June 3, 2024

SiGMA news

Betting on America, Flutter’s NYSE listing is confirmed

Flutter Entertainment has announced the completion of its primary listing transfer from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE). This move is not just a change of address; it’s a calculated business decision that reflects the company’s growing focus on the lucrative US market. It was confirmed by the company on 1 June.

Flutter Entertainment, the parent company of renowned brands such as Betfair, Paddy Power, and PokerStars, has been steadily increasing its presence in the US. The company’s operational headquarters were recently moved to New York, a decision that was followed by the relocation of its primary share listing. Both moves underscore the increasing importance of the US sports betting and iGaming market to Flutter’s business.

The company’s CEO, Peter Jackson, expressed his enthusiasm about the move, stating, “We have a fantastic position in the US, with FanDuel the clear number one operator, and we look forward to this next step on our journey.” While Flutter shares will continue trading in London, their status on the LSE has been altered to a “standard listing” from a “premium listing.”

Why the NYSE?

The decision to shift the primary listing to the NYSE is a strategic one. Flutter owns 95 percent of FanDuel, the largest online sportsbook operator in the US and one of the largest providers of internet casino gaming. This unit is the fastest-growing segment in the Flutter portfolio, which also includes Sisal, MaxBet, Junglee Games, and Adjarabet. As such, the US is the fastest-rising contributor to Flutter’s top and bottom lines, underscoring the relevance of enhancing awareness of the stock in the US.

Foreign companies like Flutter pursue primary listings in the US as these moves open the door to potential inclusion in widely observed US equity benchmarks, such as the S&P 500. Based on market cap and profitability metrics, Flutter would be eligible for inclusion in some marquee domestic equity indexes should it shift its primary listing to New York.

Calculated move reflecting the company’s growing focus on US markets

The primary listing move became official about four months after the shares debuted on the NYSE, following a long stretch of the stock trading over-the-counter in the US. The motivation behind the move was clear: to put more eyeballs on its stock. And it appears that the move is already paying dividends. Data from the first-quarter Form 13F filing season indicate several domestic professional investors have added stakes in Flutter since the stock started trading in New York.

By listing in New York, Flutter not only expanded its investor audience, but it also likely added liquidity to the shares and improved its access to capital, should that be needed in the future. This strategic move by Flutter Entertainment is a clear indication of the company’s commitment to its growth strategy in the US market, and it will be interesting to see how this decision impacts the company’s future performance.